Tax code changes could cost agriculture

Posted: 2/24/2014 |
Views: 5887

A new study shows proposed changes to the tax code restricting the use of cash accounting by agricultural operations would reduce agriculture's access to capital by as much as $12.1 billion over the next four years.

The study, released today by the national accounting firm Kennedy and Coe, LLC and Farmers for Tax Fairness revealed that U.S. agricultural producers forced to switch from cash-basis to accrual-basis accounting under new laws would have to pay out as much as $4.84 billion in taxes during the next four years. Borrowing capacity of these operations would decrease by another $7.26 billion over the same time period.